Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/312527 
Authors: 
Year of Publication: 
2023
Citation: 
[Journal:] The Central European Review of Economics and Management (CEREM) [ISSN:] 2544-0365 [Volume:] 7 [Issue:] 4 [Year:] 2023 [Pages:] 43-71
Publisher: 
WSB Merito University in Wrocław, Wrocław
Abstract: 
Aim: The main aim of this article is to examine the impact of financial leverage on firm profitability and working capital management of Asia-Pacific (APAC) firms listed in the United States and the United Kingdom. Design / Research methods: The regression analyses are conducted with panel data over the period of 2013-2022 using the Ordinary Least Squares method. Historical financial data has been obtained by using Refinitiv Eikon. In addition to quantitative research, this study also provides case examples. Conclusions / findings: The findings reveal that for APAC firms listed internationally, financial leverage has a negative relationship with firm profitability and a positive relationship with working capital levels. The study emphasizes the complex nature of financial leverage as a double-edged sword, capable of shaping the trajectories of APAC firms navigating the international business arena. Originality / value of the article: Although the effect of financial leverage on firm profitability has been researched before, it has not been researched on the Asia-Pacific region as a whole, specifically for the companies that are listed internationally. Furthermore, the effect of financial leverage on working capital management is scant overall and has rarely been examined distinctively, especially in this particular geographical region.
Subjects: 
Leverage
Working Capital Management
Cash Conversion Cycle
Firm Profitability
Asia-Pacific
International Listings
JEL: 
G32
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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